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Trade policy and labor services : final status options for the West Bank and Gaza

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  • Schiff, Maurice

Abstract

The author considers the policy options of the West Bank and Gaza with respect to trade and the export of labor services. He concludes that: 1) Nondiscriminatory trade policy is unambiguously superior to a free trade agreement with Israel; 2) The West Bank and Gaza should pursue a nondiscriminatory trade policy with all its neighbors, but only on the condition that the trade policy be open, transparent, and enforced by a credible lock-in mechanism. Otherwise, a customs union with Israel may be preferable; 3) The Palestinian Authority should establish a system of fee-based permits for Palestinians working in Israel; and 4) The Palestinian Authority should consider allowing Jordanians access to the West Bank and Gaza labor market.

Suggested Citation

  • Schiff, Maurice, 2002. "Trade policy and labor services : final status options for the West Bank and Gaza," Policy Research Working Paper Series 2824, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2824
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    References listed on IDEAS

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    1. Krueger, Anne O., 1997. "Free trade agreements versus customs unions," Journal of Development Economics, Elsevier, vol. 54(1), pages 169-187, October.
    2. Vamvakidis, Athanasios, 1998. "Regional Integration and Economic Growth," World Bank Economic Review, World Bank Group, vol. 12(2), pages 251-270, May.
    3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    Cited by:

    1. Etkes, Haggay, 2011. "The impact of employment in Israel on the Palestinian labor force (2005–08)," MPRA Paper 34681, University Library of Munich, Germany.

    More about this item

    Keywords

    Payment Systems&Infrastructure; Economic Theory&Research; Trade Policy; Environmental Economics&Policies; Rules of Origin; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Environmental Economics&Policies; Economic Theory&Research; Trade Policy; Trade and Regional Integration;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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